Ukraine extends VAT exemption for scrap metal until 2017

The Cabinet of Ministers of Ukraine extended the resolution that defines the list of operations with scrap of ferrous and non-ferrous metals, in particular, imports and exports, which are exempt from value added tax until January 1, 2017.

The amendments provided for in the Resolution of the Cabinet of Ministers No. 136 of March 25, 2015, amended the Resolution No. 15 of January 12, 2011, according to which transactions on scrap metal were exempted from VAT in 2011-2013. Earlier, Resolution No. 43 of February 5, 2014 ensured the exemption of operations with scrap metal from VAT in 2014.

Reportedly, by the Resolution of the Cabinet of Ministers of Ukraine No. 15, a list of scrap metal was determined, which includes scrap iron, stainless steel and alloy steel, which were exempted from VAT. Steel scrap from ferrous metals is also exempt from VAT.

In addition, scrap of non-ferrous metals, in particular, scrap of zinc, copper, copper alloys, nickel alloys, scrap of aluminum, zinc and tin, tungsten, molybdenum, tantalum are exempt from VAT. The list also included scrap magnesium, magnesium powder, scrap cobalt, bismuth, cadmium, titanium, zirconium, manganese, beryllium, chromium, germanium, vanadium, thallium, and cermets. Operations related to the disposal of paper and cardboard are also exempted.

At the same time, UAVtormet, the Ukrainian Association of Secondary Metals, advocates the abolition of VAT on operations with scrap metal on an ongoing basis.